Business Leaders - ABB Group · Business Leaders’ Statement ting the greater realisation of human...

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BLIHR #1 Business Leaders Initiative on Human Rights Report 1: Building Understanding ABB BARCLAYS PLC THE BODY SHOP INTERNATIONAL MTV NETWORKS EUROPE NATIONAL GRID TRANSCO NOVARTIS NOVO NORDISK

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Page 1: Business Leaders - ABB Group · Business Leaders’ Statement ting the greater realisation of human rights ... Lise Kingo Executive Vice ... Often through fulfillment of core purpose

BLIHR #1

Business Leaders Initiative on Human RightsReport 1: Building Understanding

ABB

BARCLAYS PLC

THE BODY SHOP INTERNATIONAL

MTV NETWORKS EUROPE

NATIONAL GRID TRANSCO

NOVARTIS

NOVO NORDISK

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Con

tentBusiness Leaders

Initiative on Human RightsHonorary Chair Mary Robinson

Programme Team

Björn Edlund ABB

Philippa Birtwell Barclays PLC

Nicky Amos The Body Shop International

Steve McIvor The Body Shop International

Thomas Ehr MTV Networks Europe

Svenja Geissmar MTV Networks Europe

Ian Gearing National Grid Transco

Gareth Llewellyn National Grid Transco

Professor Klaus M. Leisinger Novartis Foundation for Sustainable Development

Karin Schmitt Novartis Foundation for Sustainable Development

Elin Schmidt Novo Nordisk

Programme Coordinators

John Morrison Respect

Mei Li Han Respect

Programme Advisors

Scott Jerbi Ethical Globalisation Initiative

Professor Alan Miller

Sune Skadegard Thorsen

Luke Wilde Respect

Layout

Maria Lewander Respect

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The first report of the Business Leaders Initiative onHuman Rights (BLIHR) signals the beginning of a three-year initiative by a group of international businesses. Theaim of the BLIHR programme is to help further integratehuman rights in business. Through the work, BLIHRseeks to inspire and engage businesses and other actors insociety in working together to uphold human rights.

London and Amsterdam, December 2003

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FOREWORD: MARY ROBINSON

– honorary chair

EXECUTIVE SUMMARY

BUSINESS LEADERS’ STATEMENT

HUMAN RIGHTS AND

CORPORATE GOVERNANCE

BUSINESS LEADERS

INITIATIVE ON HUMAN RIGHTS

BLIHR TOOLKIT

APPENDIX 1

BLIHR MATRIX

APPENDIX 2

UNITED NATIONS NORMS

APPENDIX 3

COMPANY PROFILES

APPENDIX 4

RESOURCE LIST & LINKS

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Over the last decade, a growing number of companies havecome to recognize that they are not immune from humanrights issues, and indeed have an important part to play in

fostering greater respect for human rights in the countries wherethey operate. During my travels as UN High Commissioner forHuman Rights to over 80 countries, I found that business leaderswere interested in engaging on human rights questions and wereincreasingly aware that they had been dealing with human rightsissues for years, only using different labels.

Business leaders were recognising that “personnel policies”for their equal opportunity and anti-discrimination programmeswere in fact addressing human rights issues: non-discrimination is afundamental human right. The same with labour and “health &safety” policies: labour rights and the right to the highest attainab-le standard of health are basic rights spelled out in internationalhuman rights instruments.

But what I also found was that business leaders were unsureabout where their responsibilities for human rights begin and end.They were concerned that by openly expressing their commitmentto international standards such as the Universal Declaration ofHuman Rights, they would be going beyond their proper role.

In 1999, UN Secretary-General Kofi Annan proposed aGlobal Compact that would bring companies together with theUN, trade unions and civil society to support nine principles in theareas of human rights, labour and the environment and advancenew multi-stakeholder initiatives to meet the challenges of globali-sation. The Compact has made progress in engaging companiesfrom around the world on their contribution to labour and environ-mental standards, but there is still the feeling that there is a need formore clarity around corporate responsibility for human rights.

Societal expectations of business seem certain to rise in theyears ahead and there is a clear business interest in being part of thedebate that begins to define more precisely what exactly the busi-ness sphere of influence is in contemporary society for human rightsprotection, but also that of government, NGOs and other actors.

In developing a shared understanding of business responsibi-lities for human rights, we will of course need to consider manyfactors, including the nature of the product or service, the type andlocation of the relevant consumers, the size and power of thecompany, and the prevailing human rights situation in the countri-es where the company operates, in addition to the company’s proxi-mity to potential violations among other issues.

We must also consider how a clear regulatory framework couldbe helpful in more clearly defining the responsibilities of the privatesector. Companies have always recognized the importance of the

Fore

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rule of law in the context of their investments and operationsaround the world. They are the first to stress the importance of atransparent, well-functioning and just legal system as a critical partof an enabling environment for investment and economic growth.Human rights advocates similarly seek respect for the rule of law.

Is the human rights community asking the private sector toreplace governments in human rights promotion and protection?The answer is absolutely not. What we hope to see is a steady incre-ase in the number of companies that look seriously at internationalhuman rights standards when making decisions about their opera-ting methods, personnel policies, procurement and investmentdecisions, among others.

The good news is that there are now tools to help companieswith this task. For example, the UN Sub-Commission on thePromotion and Protection of Human Rights has recently adopted aset of human rights norms for business, that pulls together in onedocument international human rights standards that are relevant tobusiness -- relating to labour issues, health and environmental issu-es, discrimination issues, security issues, etc.

The Business Leaders Initiative on Human Rights (BLIHR)seeks to be a catalyst for developing a shared understanding of busi-ness in relation to human rights and in raising the profile of humanrights on the international corporate agenda. As you will see in thisreport, one of the first tools that the Initiative has begun to developis a matrix that shows the vast scope for voluntary business actionsthat might be branded ‘corporate social opportunity’.

A human-rights approach does not necessarily mean businesseswill be doing more. Rather, it should help and may help companiesto develop strategies around social spending. In some instances, itmight mean companies doing less, but being more sustainable intheir approach and much clearer in their understanding about theboundaries of business and government responsibility.

The companies participating in the Business Leaders Initiativeon Human Rights are committed to integrating concern for humanrights into their work and to addressing specific dilemmas withineach of their sectors that will encourage the development of furthertools that can be useful for others. The cumulative effect of busines-ses placing a higher importance on the human rights implications oftheir actions , whether positive and negative, could in the comingyears make a significant impact on respect for human rights aroundthe world.

Mary Robinson

Honorary Chair

Business Leaders Initiative on Human Rights

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The first report of the Business Leaders Initiative on HumanRights (BLIHR) signals the beginning of a three-year initia-tive by a group of international businesses. The aim of the

BLIHR programme is to help further integrate human rights inbusiness policies and practices. Member companies also view inter-national human rights standards as an important part of the emer-ging global governance debate. These standards provide guidance indefining more precisely the respective responsibilities of govern-ment, business, NGOs and other societal actors in achieving equi-table and sustainable development. Through its work, BLIHR seeksto inspire and engage businesses and other actors in society inworking together to uphold human rights.

Businesses face both conceptual and practical difficulties whenapproaching human rights that need to be addressed. The compani-es participating in the BLIHR programme are opening a dialoguewith a range of NGOs, academics, UN institutions and wider busi-ness networks to better understand these areas of complexity. It iswithin this spirit that the group is engaging positively with the‘United Nations Norms on the Responsibilities of Trans-nationalCorporations and other business enterprises with regard to HumanRights’. The BLIHR programme is committed to testing the valueof this new tool as a driver for change, and contributing to the workof existing networks and associations committed to promotinghuman rights in business.

The first tool being developed by the BLIHR programme takesthe range of issues covered by the UN Norms and cross-referencesthem with the ‘essential’, ‘expected’ and ‘desirable’ actions any indi-vidual company can take. The objective is to analyse existing busi-ness activities and create a template for understanding opportuniti-es for new action. The next phase of the BLIHR programme willfocus on specific dilemmas across a range of business sectors andexplore how human rights can support the decision-making process.The knowledge and understanding gained will inform the develop-ment of criteria for establishing an appropriate and effective role forcompanies when relating to government, NGOs and other actors insociety on specific human rights issues.

Exec

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As companies involved in the Business Leaders Initiative on Human Rights, we recog-nise the essential role of human rights as part of good corporate governance. We beli-eve that business can fulfil a role in supporting greater respect for human rights

around the world. Our intention is to find practical ways of applying the aspirations of theUniversal Declaration of Human Rights within a business context and to inspire other busi-nesses to do likewise.

We support the work of the United Nations, Governments, Trade Unions and Non-governmental organisations (NGOs) in protecting and promoting universal human rights.Although the role of business should in no way undermine or replace the fundamental humanrights responsibilities of governments, there is much that can be done by companies to helpfulfil and uphold these rights. NGOs and other non-state actors also have important roles toplay and we should all aspire to abide by the principles of accountability and transparency thatare central to social responsibility.

The Universal Declaration of Human Rights provides a common framework withinwhich responsible business can address these important issues and helps shed light on wherethe respective responsibilities of government, business and wider civil society lie. As we workthrough the way human rights relate to various business sectors and across different regions ofthe world, we will identify some of the critical dilemmas and challenges facing business. Overthe next three years, our intention is also to develop a toolkit for business, to offer practicalsupport in implementing the principles of the Universal Declaration on Human Rights.

An important contribution during 2003 has been the work of the UN Human Rights Sub-Commission in adopting Human Rights Norms for transnational and other businesses. Wewill give serious consideration to the role these Norms might play in our own work.

As members of the Business Leaders Initiative on Human Rights, our claim toleadership is based on the role we can play in encouraging wider business interest in suppor-ting the greater realisation of human rights around the world.

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BLIHR, December 2003

BLIHR #1 – BUSINESS LEADERS’ STATEMENT

Björn Edlund

Group Senior Vice President, ABB Ltd

Chris Lendrum

Group Executive Director, Barclays PLC

Adrian Bellamy

Executive Chairman, The Body Shop International PLC

Svenja Geissmar,

Senior Vice President for Corporate Business Affairs and General Counsel,MTV Networks Europe

Gareth Llewellyn

Group Corporate Responsibility Director,

National Grid Transco PLC

Klaus Leisinger

President and CEO, Novartis Foundation for Sustainable Development

Lise Kingo

Executive Vice President, Novo Nordisk A/S

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“The common interest is what is beneficial to the

whole of society, or in today’s global thinking, the

world, that is not served by pursuit of a multitude

of individual interests.”

Chris Marsden Chair of the UK Amnesty Business Group

Corporate social responsibility has evolved in a timeof increased economic and social globalisation. Aspart of this evolution, a debate about not just the

social responsibilities of business but rather the respectiveroles other state and non-state actors can play in the gover-nance of global and national society is emerging. While theworld urgently requires engaged international governance,a question of the legitimate and appropriate role businesscan play is a question that remains unanswered.

There is increasing acceptance from business that itcan uphold basic human rights in its core operations andsupply chains. Voluntary standards like the Global Repor-ting Initiative or the FTSE4Good Index are moving increa-singly towards human rights benchmarks and the OECDGuidelines for Multinational Enterprises and the Conven-tions of the International Labour Organisation are activelypromoted by some Governments. And as society andgovernments struggle to face pressing issues (such as globalpoverty, HIV/AIDS, conflict, the lack of societal integra-tion and environmental degradation) it is clear that busi-ness can contribute to solutions and be engaged in publicpolicy dialogue.

The expectations from many stakeholders in regardsto corporate governance and responsibility are emerging inseveral distinct arenas. In the US, a number of major corpo-rations are facing legal proceedings under the Alien Tort

Claims Act that allege corporate complicity in (often histo-rical) human rights abuses abroad. An article in theSeptember 2003 Harvard Business Review titled, ‘Emer-ging Threat: Human Rights Claims’ argues that companiesmust act now to identify their human rights risks and takemeasures to protect themselves from future claims.

Specific industry sectors also face growing humanrights challenges. For example, the pharmaceutical industryis under increasing pressure to play a larger role in assuringinternationally recognized rights, such as the right to thehighest attainable standard of health. This can be seen mostimmediately in the debate over drugs on the World HealthOrganisation (WHO) essential drugs list such as forHIV/AIDS, multi-resistant TB and malaria that are stillunder patent protection. The societal need for affordableand accessible medicines should be understood in associa-tion with the real costs of developing effective treatments.The private sector plays an essential role in the develop-ment of drugs but so must government to ensure their avai-lability to those most in need. The reality is that the right tohealth can only ever be fully realized through close co-operation between government, business and other actors.

Another example of corporate responses to growingsocietal expectations can be seen in recent Host Govern-ment Agreements (HGAs) between international compa-nies, in particular the extractive sector, and specific govern-

BLIHR #1 – HUMAN RIGHTS AND CORPORATE GOVERNANCE

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BLIHR #1 – HUMAN RIGHTS AND CORPORATE GOVERNANCE6

ments in areas of operations. The consortium of companies, led byBritish Petroleum, developing the Baku-Tbilisi-Ceylan pipelinerecently gave specific assurances relating to their HGA in light ofhuman rights concerns.

All of these examples point to the challenge of identifying clea-rer boundaries between government and business responsibility forhuman rights. Earlier this year, The Prince of Wales InternationalBusiness Leaders Forum started to flag central issues in such ‘boun-dary setting’ in its publication titled, “The Buck Stops Where?”International human rights standards should be a central part ofthis analysis. International human rights law is very clear in placingthe primary responsibility for realising these rights with govern-ments. But there has been less clarity about the extent of responsi-bilities by other ‘organs of society’ as the Universal Declaration ofHuman Rights proclaims.

A first step was taken earlier this year in addressing thisconcern. The United Nations Human Rights Sub-Commission, abody of experts appointed by the inter-governmental UN Commis-sion on Human Rights, approved ‘Norms on the Responsibilities ofTrans-national Corporations and other business enterprises withRegard to Human Rights’. These Norms integrate existing stan-dards concerning labour rights, human rights, consumer protectionand environmental protection in the same document and offer auseful starting place for any business wishing to explore the ways itmight contribute to good governance at home and abroad.Although civil society and some business leaders have alreadywelcomed this development, there are some serious concerns raisedby some business associations as to the utility of the Norms. Thepoints raised include the breadth of the document, the viability ofthe monitoring proposals, clarity about the ‘pre-cautionary’ princi-ple and concerns about any move away from purely voluntaryapproaches to human rights. However, the Norms have yet to besubject to sustained analysis and they require operational testing bybusiness in order to demonstrate their potential utility or limita-tions.

At a very minimum, business has a moral obligation to ensure itdoes not undermine elected governments or the democraticprocess. Yet many international companies are present in countrieswhere the governments are unwilling or unable to fully realise thehuman rights of their populations, posing difficult questions aboutthe responsibilities of business in such situations.

The pressure and the need to consider the human rights andcorporate governance discussion is intensifying, touching allsectors of business and influencing all levels of operations. Compa-nies participating in BLIHR believe human rights policies and prac-tices are a key part of any strategy to foster a sustainable and respon-sible business environment. BLIHR welcomes the opportunity tocontribute to this evolving discussion.

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All actors and sectors of society have a role to play in realisingfundamental human rights. The BLIHR programme seeksto build a powerful common ground for meaningful action

and lasting change.

The BLIHR programme is a voluntary, three-year initiative designed to:

Integrate human rights into business decision making;Empower and strengthen existing initiatives that are workingtowards the same goal.

The BLIHR programme recognizes the significant concerns andchallenges that exist within the business community to integratehuman rights into the business agenda. To address these challenges,a clearer understanding of the concepts addressed in the UN GlobalCompact and the UN Norms is needed. BLIHR draws on expertinput from academia, governments, trade unions, non-governmen-tal organizations, business and seeks to develop dialogue with otherstakeholders at local, national and international levels. The BLIHRprogramme contributes to dialogues with the United Nations,NGOs and other business groups and is committed to sharing theknowledge and experience gained over the course of the 3 year initi-ative.

The key conceptual areas BLIHR intends to address are :

Limits of responsibility

There is a need for a better understanding of businesses’ appro-priate ‘sphere of influence’ and ‘fair division of labour’ withother societal actors in efforts to promote and protect humanrights. BLIHR will identify ways that these responsibilitiesmight be understood across a range of business sectors and indifferent parts of the world. The intention is to develop criteriathat will help business to establish an appropriate sphere of influ-ence and relationship with other actors such as governments andNGOs.

Guarding against complicity in human rights abuses

Business needs to be vigilant with regard to direct or indirectcomplicity in any abuse of human rights. BLIHR will referencethe best work available and facilitate dialogue with NGOs,academics and governments to better understand this oftencontentious issue and how it can be avoided.

Understanding if regulation is appropriate

The BLIHR companies embrace the opportunity for creativitythat voluntary initiatives in support of human rights offer whilerecognizing that there may be a case for greater regulation ofminimum international standards.

The BLIHR companies represent a cross sector of business andgeographic influences and the intention is to continue to extendmembership to include wider representation from other conti-nents. The working programme consists of three to four workinggroups each year and a commitment to report annually on oraround 10 December, International Human Rights Day.

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BLIHR #1 – BUSINESS LEADERS INITIATIVE ON HUMAN RIGHTS8

BLIHR programme

The BLIHR programme centres on three key elements:

1. Dialogue & ReportingThe initial BLIHR discussions raised many questions and opportunities

around the role business leaders can play to develop a wider under-

standing of human rights within each member company as well as what

can be done to encourage others in the business world to consider the

contribution they can make to human rights. Communicating this

leadership experience and understanding is partly realized in the

production of an annual BLIHR Report communicating:

• Insight from BLIHR company leaders and Mrs. Mary Robinson as

the group’s honorary chair,

• Individual leadership best practices from each company and dia-

logues with other companies operating in the same geographic loca-

tions or facing similar challenges, and

• Commitments that have been made by the business community and

utility of human rights as a management tool.

2. Tools for ChangeWhile the intentions of the Universal Declaration of Human Rights and

the UN Norms provide a direction, the BLIHR programme works to

find practical applications and tools to support the development of

learning and action. The three year programme will seek to identify

how human rights can be used in addressing specific business dilem-

mas. The BLIHR matrix is the first tool that enables businesses to map

existing activities within a human rights framework.

3. Communication The language of human rights is legally based and written largely by

governments for governments. As such, it does not easily lend itself to

operational managers seeking to ensure socially responsible business

practices. The BLIHR programme will explore how human rights stan-

dards can be more effectively used by managers in their work and

increase understanding of the boundaries of business responsibilities

for human rights in different sectors and contexts.

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The development of practical guidance and tools for usinghuman rights standards as part of business policy and practi-ce is key element of the BLIHR programme. This process

involves a combination of internal BLIHR programme work andreview of existing guidelines and tools. Some examples of existingtools include:

• The Human Rights Compliance Assessment (HRCA) is a tool, desig-ned by the Danish Institute for Human Rights with the Confe-deration of Danish Industries, to help companies avoid violatingthe human rights of employees, inhabitants of the local area, andother stakeholders affected by business operations. It is a web-friendly computer programme comprising 1000 indicators and300 questions together forming a searchable database. The ques-tions, (based on the Universal Declaration of Human Rights, theILO Core Conventions, and several other major human rightstreaties and conventions) are drawn wide enough to enablecompanies to select and modify the programme to suit theirparticular requirements. If applied successfully they will alsogenerate concrete indications of areas of non-compliance.(http://www.humanrightsbusiness.org/HRCA_overview.htm).

• The Business & Human Rights: A Geography of Corporate Risk is ajoint publication of Amnesty International and The Prince ofWales International Business Leaders Forum (IBLF). It consistsof a series of seven detailed world maps that illustrate countrieswith well-documented records of human rights abuse coupledwith high levels of foreign direct investment, and highlightswhere multinational companies may be exposed to human rightsrelated risk, depending on the nature and location of their opera-tions. The research directs companies to initiatives and resourcesthat may help them to implement good human rights risk mana-gement. (http://www.iblf.org/csr/csrwebassist.nsf/webprintview/b1f2h3.html).

• The activities of the UN Global Compact including the learningforums for companies and the 2004 Global Compact SourceBook which will contain a selection of human rights tools forbusiness. (www.globalcompact.org).

BLIHR MatrixIn the first year of the BLIHR programme, it is important for parti-cipating companies to outline their core business activities in rela-tion to human rights standards in a transparent and consistentframework. The BLIHR Matrix is the first tool in the BLIHR tool-kit, and is based on the UN Norms and the work developed by theNovartis Foundation (see Appendix 2). The matrix provides anapproach for mapping and assessing the connection between busi-ness and these rights. Specifically, the matrix provides insight intowhat is regarded as ‘essential’, ‘expected’ or ‘desirable’ behaviour.

NON-NEGOTIABLE ESSENTIALS: the minimum obligations that aresponsible company is expected to comply with, including:

• Existing labour, environmental, tax and others laws in countriesit operates in.

• Requirements of market regulators and licence granters e.g.industry-specific SEC guidelines, industry regulators.

• Government or agency defined requirements e.g. health andsafety regulations, corporate reporting requirements etc.

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We are grateful for the work of Klaus Leisinger of the Novartis Foundation in constructing this initial tool.

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EXPECTED: those things that are increasingly expected of a progressi-ve and ‘responsible’ company but are not mandated, such as;

• Public statements and/or policies on social and environmentalissues.

• Internal processes that support / implement such policies.

• Relevant supplier qualification, monitoring and audit program-mes.

• Public reporting.

DESIRABLE: additional voluntary actions that seek to establish posi-tive contributions to society beyond legal and expected require-ments of a responsible company, such as:

• Creating positive multipliers along a company’s supply chain.

• Strategic philanthropy and social investment.

• Public policy dialogue.

• Assistance to disadvantaged groups.

Developing the matrixThe matrix is a dynamic tool, and the BLIHR working programmeidentified a number of possible directions for further developing theframework and methodology during 2004:

• To use the matrices to develop sector specific dialogue to identifyand agree ‘expected’ activities. This might build a consensus onwhat ‘minimum’ (i.e. regulated) standards should be.

• The matrix allows a specific company to be more strategic aboutits ‘desirable’ activities, allowing business to assess long-terminterests of specific stakeholder groups and better understandcommunity investment activities.

• Further analysis might also lead to additional development ofappropriate human rights based indicators, that can be objective-ly set and measured and that are comparable between geographiclocations and business sectors.

Other tools to be developedBusiness dilemma criteriaBusiness faces many challenges and a human rights perspectiveencourages an understanding of an internationally agreed, values-led framework for decision making processes. The BLIHR workingprogramme will identify a set of business dilemmas, and use humanrights assessment based on six key steps:

STEP 1: Identify a major business dilemma that has a societalimpact.

STEP 2: Identify main stakeholder groups affected.STEP 3: Evaluate the societal impacts of current approaches to the

dilemma (considering the ‘chain of actors’ involved)STEP 4: What are the major human rights involved

(with reference to the matrix)?STEP 5: What positive business actions might be taken to support

the implementation of these rights and how might thisaffect other business and/or stakeholder interests?

STEP 6: Are human rights a useful tool for navigating the dilem-ma? Is there a benefit to using human rights principles/norms as a framework for business decisions and avertingdilemmas?

‘Fair societal division of labour’ criteriaAs noted previously, one of the main challenges facing governments,NGOs, UN agencies and businesses alike is defining the appropriateroles of different actors in meeting the needs of society. BLIHRintends to develop a third set of tools for helping business navigateand define its appropriate role in human rights across a range ofbusiness sectors and geographic locations.

BLIHR #1 – BLIHR TOOLKIT

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Page 14: Business Leaders - ABB Group · Business Leaders’ Statement ting the greater realisation of human rights ... Lise Kingo Executive Vice ... Often through fulfillment of core purpose

12

The principal document relating tohuman rights is The UniversalDeclaration of Human Rights,adopted by the United NationsGeneral Assembly on 10 December1948 and now available in over300 different languages athttp://www.unhchr.ch/udhr/index.htm.

We have not reproduced thisdocument here for sake of space,but it is the first place for anyoneto go to when seeking a generalunderstanding of human rights.Following the Universal Declara-tion there have been a series ofConventions and Convenants rela-ting to Human Rights which canbe reviewed at the same website.The Conventions of the Internatio-nal Labour Organisation are avail-able at www.ilo.ch.

The United Nations Global Compact(www.globalcompact.org) has a number ofrelevant principles for business relating both tohuman rights and labour rights. The first twoprinciples of the Global Compact are that:“Businesses should support and respect theprotection of internationally proclaimedhuman rights within their sphere of influence;and make sure that they are not complicit inhuman rights abuses.” The ‘United NationsNorms on the Responsibilities of TransnationalCorporations and other business enterpriseswith Regard to Human Rights’ were approvedon the 13 August 2003, by U.N. Sub-Commis-sion on the Promotion and Protection ofHuman Rights resolution 2003/16. The ‘Norms’ are reproduced here:

A. General obligations1. States have the primary responsibility topromote, secure the fulfilment of, respect, ensurerespect of and protect human rights recognized ininternational as well as national law, includingensuring that transnational corporations and otherbusiness enterprises respect human rights. Withintheir respective spheres of activity and influence,transnational corporations and other businessenterprises have the obligation to promote, securethe fulfilment of, respect, ensure respect of andprotect human rights recognized in internationalas well as national law, including the rights andinterests of indigenous peoples and other vulnerab-le groups.

B. Right to equal opportunity and non-discriminatory treatment

2. Transnational corporations and other businessenterprises shall ensure equality of opportunityand treatment, as provided in the relevant interna-

tional instruments and national legislation as wellas international human rights law, for the purposeof eliminating discrimination based on race,colour, sex, language, religion, political opinion,national or social origin, social status, indigenousstatus, disability, age – except for children, whomay be given greater protection – or other statusof the individual unrelated to the inherent require-ments to perform the job, or of complying withspecial measures designed to overcome past discri-mination against certain groups.

C. Right to security of persons3. Transnational corporations and other businessenterprises shall not engage in nor benefit fromwar crimes, crimes against humanity, genocide,torture, forced disappearance, forced or compul-sory labour, hostage-taking, extrajudicial,summary or arbitrary executions, other violationsof humanitarian law and other internationalcrimes against the human person as defined byinternational law, in particular human rights andhumanitarian law.

4. Security arrangements for transnational corpo-rations and other business enterprises shall obser-ve international human rights norms as well as thelaws and professional standards of the country orcountries in which they operate.

D. Rights of workers5. Transnational corporations and other businessenterprises shall not use forced or compulsorylabour as forbidden by the relevant internationalinstruments and national legislation as well asinternational human rights and humanitarian law.

6. Transnational corporations and other businessenterprises shall respect the rights of children tobe protected from economic exploitation as forbid-den by the relevant international instruments andnational legislation as well as international humanrights and humanitarian law.

7. Transnational corporations and other businessenterprises shall provide a safe and healthyworking environment as set forth in relevant inter-national instruments and national legislation aswell as international human rights and humanita-rian law.

8. Transnational corporations and other businessenterprises shall provide workers with remunera-tion that ensures an adequate standard of livingfor them and their families. Such remunerationshall take due account of their needs for adequateliving conditions with a view towards progressiveimprovement.

9. Transnational corporations and other businessenterprises shall ensure freedom of associationand effective recognition of the right to collective

bargaining by protecting the right to establish and,subject only to the rules of the organizationconcerned, to join organizations of their own choo-sing without distinction, previous authorization, orinterference, for the protection of their employ-ment interests and for other collective bargainingpurposes as provided in national legislation andthe relevant conventions of the InternationalLabour Organization.

E. Respect for national sovereignty and human rights

10. Transnational corporations and other business enterprises shall recognize and respect applicablenorms of international law, national laws andregulations, as well as administrative practices,the rule of law, the public interest, developmentobjectives, social, economic and cultural policiesincluding transparency, accountability and prohi-bition of corruption, and authority of the countriesin which the enterprises operate.

11. Transnational corporations and other businessenterprises shall not offer, promise, give, accept,condone, knowingly benefit from, or demand abribe or other improper advantage, nor shall theybe solicited or expected to give a bribe or otherimproper advantage to any Government, publicofficial, candidate for elective post, any member ofthe armed forces or security forces, or any otherindividual or organization. Transnational corpora-tions and other business enterprises shall refrainfrom any activity which supports, solicits, orencourages States or any other entities to abusehuman rights. They shall further seek to ensurethat the goods and services they provide will not beused to abuse human rights.

12. Transnational corporations and other businessenterprises shall respect economic, social andcultural rights as well as civil and political rights

BLIHR #1 – APPENDIX 2: UNITED NATIONS NORMS

‘United Nations Norms of the Responsibilities of Trans-national App

endi

x 2

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13

and contribute to their realization, in particularthe rights to development, adequate food and drin-king water, the highest attainable standard ofphysical and mental health, adequate housing,privacy, education, freedom of thought, conscien-ce, and religion and freedom of opinion andexpression, and shall refrain from actions whichobstruct or impede the realization of those rights.

F. Obligations with regard to consumer protection

13. Transnational corporations and other businessenterprises shall act in accordance with fair busi-ness, marketing and advertising practices andshall take all necessary steps to ensure the safetyand quality of the goods and services they provide,including observance of the precautionary princi-ple. Nor shall they produce, distribute, market, oradvertise harmful or potentially harmful productsfor use by consumers.

G. Obligations with regard to environmental protection

14. Transnational corporations and other businessenterprises shall carry out their activities in accor-dance with national laws, regulations, administra-tive practices and policies relating to the preserva-tion of the environment of the countries in whichthey operate, as well as in accordance with rele-vant international agreements, principles, objecti-ves, responsibilities and standards with regard tothe environment as well as human rights, publichealth and safety, bioethics and the precautionaryprinciple, and shall generally conduct their activi-ties in a manner contributing to the wider goal ofsustainable development.

H. General provisions of implementation15. As an initial step towards implementing theseNorms, each transnational corporation or otherbusiness enterprise shall adopt, disseminate andimplement internal rules of operation in complian-

ce with the Norms. Further, they shall periodicallyreport on and take other measures fully to imple-ment the Norms and to provide at least for theprompt implementation of the protections setforth in the Norms. Each transnational corpora-tion or other business enterprise shall apply andincorporate these Norms in their contracts orother arrangements and dealings with contrac-tors, subcontractors, suppliers, licensees, distribu-tors, or natural or other legal persons that enterinto any agreement with the transnational corpo-ration or business enterprise in order to ensurerespect for and implementation of the Norms.

16. Transnational corporations and other busines-ses enterprises shall be subject to periodic moni-toring and verification by United Nations, otherinternational and national mechanisms already inexistence or yet to be created, regarding applica-tion of the Norms. This monitoring shall be trans-parent and independent and take into accountinput from stakeholders (including non govern-mental organizations) and as a result ofcomplaints of violations of these Norms. Further,transnational corporations and other businessesenterprises shall conduct periodic evaluationsconcerning the impact of their own activities onhuman rights under these Norms.

17. States should establish and reinforce thenecessary legal and administrative framework forensuring that the Norms and other relevant natio-nal and international laws are implemented bytransnational corporations and other businessenterprises.

18. Transnational corporations and other businessenterprises shall provide prompt, effective andadequate reparation to those persons, entities andcommunities that have been adversely affected byfailures to comply with these Norms through, interalia, reparations, restitution, compensation andrehabilitation for any damage done or propertytaken. In connection with determining damages inregard to criminal sanctions, and in all otherrespects, these Norms shall be applied by nationalcourts and/or international tribunals, pursuant tonational and international law.

19. Nothing in these Norms shall be construed asdiminishing, restricting, or adversely affecting thehuman rights obligations of States under nationaland international law, nor shall they be construedas diminishing, restricting, or adversely affectingmore protective human rights norms, nor shallthey be construed as diminishing, restricting, oradversely affecting other obligations or responsi-bilities of transnational corporations and otherbusiness enterprises in fields other than humanrights.

I. Definitions20. The term “transnational corporation” refersto an economic entity operating in more than onecountry or a cluster of economic entities operatingin two or more countries - whatever their legalform, whether in their home country or country ofactivity, and whether taken individually or collec-tively.

21. The phrase “other business enterprise” inclu-des any business entity, regardless of the interna-tional or domestic nature of its activities, inclu-ding a transnational corporation, contractor,subcontractor, supplier, licensee or distributor; thecorporate, partnership, or other legal form used toestablish the business entity; and the nature of theownership of the entity. These Norms shall bepresumed to apply, as a matter of practice, if thebusiness enterprise has any relation with a trans-national corporation, the impact of its activities isnot entirely local, or the activities involve viola-tions of the right to security as indicated inparagraphs 3 and 4.

22. The term “stakeholder” includes stockhol-ders, other owners, workers and their representa-tives, as well as any other individual or group thatis affected by the activities of transnational corpo-rations or other business enterprises. The term“stakeholder” shall be interpreted functionally inthe light of the objectives of these Norms andinclude indirect stakeholders when their interestsare or will be substantially affected by the activiti-es of the transnational corporation or businessenterprise. In addition to parties directly affectedby the activities of business enterprises, stakehol-ders can include parties which are indirectly affec-ted by the activities of transnational corporationsor other business enterprises such as consumergroups, customers, Governments, neighbouringcommunities, indigenous peoples and communiti-es, non governmental organizations, public andprivate lending institutions, suppliers, trade asso-ciations, and others.

23. The phrases “human rights” and “internatio-nal human rights” include civil, cultural, econo-mic, political and social rights, as set forth in theInternational Bill of Human Rights and otherhuman rights treaties, as well as the right to deve-lopment and rights recognized by internationalhumanitarian law, international refugee law,international labour law, and other relevantinstruments adopted within the United Nationssystem.

BLIHR #1 – APPENDIX 2: UNITED NATIONS NORMS

Corporations and Other Business Enterprises with Regard to Human Rights’

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14 BLIHR #1 – APPENDIX 3: COMPANY PROFILES

App

endi

x 3:Com

pany

pro

files Barclays PLC is a UK-

based financial services group

engaged primarily in banking, investment banking and invest-

ment management. Barclays is one of the largest financial

services groups in the UK and one of the leading providers of

financial services to consumers, businesses and financial institu-

tions worldwide. Barclays’ mission is to be an innovative, custo-

mer-focused organisation that delivers superb products and

services, ensures excellent careers for our people and contribu-

tes positively to the communities in which they work and live.

Barclays has been involved in banking for over 300 years

and operates in over 60 countries with over 73,000 employees

and 20 million customers. For the year 2002 Barclays achieved

a pre-tax profit of £3,205 million, paid £1.2 billion to sharehol-

ders in dividends, almost £1 billion in taxes and more than £3.6

billion in employee salaries. Barclays also invested £32 million

in community initiatives in the areas of education, the arts, the

environment, disability, and social inclusion.

www.barclays.com

Barclays PLC

ABB is a leader in power and automa-

tion technologies that enable utility and

industry customers around the world to improve performan-

ce while lowering environmental impact.

In power technologies, ABB provides industrial and

commercial customers, as well as electric, gas and water

utilities, with a broad range of products, services and solu-

tions for power transmission and distribution.

ABB strives to add sustainable value for all our stakehol-

ders by seeking to balance the economic, environmental and

social impact of their activities, and by seeking to be a posi-

tive contributor wherever they do business.

The ABB Group was formed in 1988 when the Swedish

ASEA and the Swiss BBC Brown Boveri merged under the

name ABB. ABB and its predecessor companies have a

history of technology innovation that stretches back more

than a century. ABB has its Group headquarters in Zurich,

Switzerland, and employs about 120,000 people in around

100 countries.

www.abb.com

ABB

The Body Shop International is a retailer of skin,

hair and body care products. We are dedicated to the pursuit of

social and environmental change by creatively balancing the

financial and human needs of our stakeholders; ensuring our

business is ecologically sustainable; contributing to local,

national and international communities in which we trade; and

campaigning for the protection of human and civil rights and

the environment and against animal testing.

The Body Shop has around 2,000 stores in 50 countries.

Worldwide retail sales in 2002/03 were £697.1 million with

an operating profit of £26.9 million. The Company directly

employs around 6,000 people.

www.thebodyshop.com

The Body Shop

Novartis AG (NYSE: NVS) is a world leader in phar-

maceuticals and consumer health. In 2002, the Group's busi-

nesses achieved sales of USD 20.9 billion and a net income

of USD 4.7 billion. The Group invested approximately USD

2.8 billion in R&D. Headquartered in Basel, Switzerland,

Novartis Group companies employ about 78 200 people and

operate in over 140 countries around the world.

For further information please consult

www.novartis.com

www.novartisfoundation.com.

Novartis AG (NYSE: NVS)

Page 17: Business Leaders - ABB Group · Business Leaders’ Statement ting the greater realisation of human rights ... Lise Kingo Executive Vice ... Often through fulfillment of core purpose

15BLIHR #1 – APPENDIX 3: COMPANY PROFILES

Novo Nordisk is a focused

healthcare company. With the

broadest diabetes product port-

folio in the industry, including

the most advanced products

within the area of insulin delivery systems, Novo Nordisk is a

world leader in diabetes care. In addition, Novo Nordisk has

a leading position within areas such as haemostasis manage-

ment, growth hormone therapy and hormone replacement

therapy. Novo Nordisk manufactures and markets pharma-

ceutical products and services that make a significant diffe-

rence to patients, the medical profession and society. With

headquarters in Denmark, Novo Nordisk employs approxi-

mately 18,500 people in 68 countries and markets its

products in 179 countries. Novo Nordisk’s B shares are

listed on the stock exchanges in Copenhagen and London. Its

ADRs are listed on the New York Stock Exchange under the

symbol ‘NVO’.

www.novonordisk.com

Novo Nordisk

National Grid Transco is one of the world’s largest

utilities, and the largest investor-owned utility in the UK.

National Grid Transco is focused on delivering energy safely,

reliably and efficiently. It owns and operates the gas

transmission and distribution systems in Britain, delivering

gas to some 21 million homes, offices, and factories, and the

high-voltage electricity transmission system in England and

Wales. In the US, National Grid Transco owns and operates

the electricity transmission and distribution assets serving

over 3.2 million customers in New England and New York

State and a gas distribution network serving over 500,000

customers in New York State. Other electricity interests

include interconnectors in the UK, US and Australia, and

joint venture transmission networks in Argentina and

Zambia.

In 2002/03 National Grid Transco had a turnover of £9.4

billion, a profit of over £2 billion and worldwide operations

comprised over 27,000 employees. One of the world’s largest

utilities, National Grid Transco believes that a responsible

approach to doing business is fundamental and strives to act

sustainably as a business, in social roles, and in how they

interact with the environment.

www.ngtgroup.com

National Grid Transco

MTV Networks Europe is Euro-

pe's largest 24-hour music television

network, reaching more than 136.4

million households through 36 separate

and regionalized terrestrial, cable, and

satellite channels and 11 websites in 48

territories and 11 languages. MTVNE’s brands include MTV,

VH1, Nickelodeon, and The Music Factory. Internationally,

MTV Networks reaches more than 380 million households in

163 countries and 18 languages via 95 locally programmed and

operated TV channels and 43 websites. MTV Networks Interna-

tional’s diverse holdings also include interests in television

syndication, publishing, home video, radio, recorded music,

licensing and merchandising, and two feature film divisions,

MTV Films and Nickelodeon Movies.

In addition to its core entertainment business, MTV is a

leader in socially-oriented television programming, including

MTVNE’s global Free Your Mind initiative, which highlights

human rights issues and encourages freedom from intolerance

and prejudice. MTVNE’s Free Your Mind Award is presented

annually to an individual or organisation that exemplifies these

ideals, and is featured in the MTV Europe Music Awards, the

most widely broadcast music awards show in the world. With

the recent establishment of the MTV Europe Foundation,

MTVNE is increasing its commitment to raising awareness and

effecting positive change regarding the critical issues facing

young people today.

www.mtvne.com

MTV Networks Europe

Page 18: Business Leaders - ABB Group · Business Leaders’ Statement ting the greater realisation of human rights ... Lise Kingo Executive Vice ... Often through fulfillment of core purpose

16

UN Global Compact www.globalcompact.orgThrough the power of collective action, theGlobal Compact seeks to advance responsiblecorporate citizenship so that business can bepart of the solution to the challenges ofglobalisation.

Business & Human Rights Resource Centre www.business-humanrights.orgThe Resource Centre is the largest internatio-nal website on the subject of business andhuman rights, with sections on over 1000companies, over 150 countries and over 150issues.

African Institute for Corporate Citizenshipwww.corporatecitizenship-africa.comThe African Institute of Corporate Citizen-ship (AICC) is a centre of excellence in corpo-rate social responsibility. (Based in SouthAfrica).

Amnesty International Business GroupsAmnesty business groups include those in theUK (www.amnesty.org.uk/business), theNetherlands, Sweden, Norway and Denmarkand each has undertaken a variety of activiti-es to promote human rights within leadingtransnational corporations based in theirrespective countries.

Business for Social Responsibilitywww.bsr.orgBusiness for Social Responsibility (BSR) is aglobal organization that helps membercompanies achieve success in ways thatrespect ethical values, people, communitiesand the environment.(Based in San Francisco).

Council on Economic Priorities Accreditation Agency www.cepaa.orgSocial Accountability International (SAI)works to improve workplaces and combatsweatshops through the expansion and furt-her development of the international work-place standard, SA8000, and the associatedS8000 verification system. (Based in NewYork).

Danish Institute for Human Rightswww.humanrightsbusiness.orgThe Human Rights & Business Project strivesto combine the expertise of the human rightsresearch community with the experience ofbusiness in order to develop concrete achie-vable human rights standards for companies,and to help companies live up to those stan-dards in practice through training and advi-sory services. (Based in Copenhagen).

Ethical Trading Initiative www.ethicaltrade.orgThe ETI is an alliance of companies, non-governmental organisations (NGOs), andtrade union organisations committed toworking together to identify and promoteethical trade - good practice in the implemen-tation of a code of conduct for good labourstandards. (Based in London).

Ethos Institute www.ethos.org.brThe ‘Instituto Ethos de Empresas e Respon-sabilidade Social’ is an association of compa-nies of any size and/or sector that areinterested in developing their activities in asocially responsible manner, in a permanentprocess of evaluation and improvement.(Based in São Paulo)..

Fund for Peace Human Rights and Business Roundtable www.fundforpeace.org/programs/hrbrtLaunched in 1997, the Roundtable is the firstforum designed for multinational businessesand mainstream human rights organizationsto discuss issues of common concern in anatmosphere of mutual respect, trust andconfidentiality. (Based in Washington D.C.).

Global Reporting Initiative www.globalreporting.orgThe Global Reporting Initiative (GRI) is amulti-stakeholder process and independentinstitution whose mission is to develop anddisseminate globally applicable Sustainabili-ty Reporting Guidelines. (Based in Amster-dam).

The International Confederation of Free Trade Unions www.icftu.orgICFTU was set up in 1949 and has 231 affili-ated organisations in 150 countries and terri-tories on all five continents, with a member-ship of 158 million. It has three major regio-nal organisations, APRO for Asia and thePacific, AFRO for Africa, and ORIT for theAmericas. (Based in Brussels).

Organisation for Economic Co-operation and Development www.oecd.frThe OECD Guidelines for MultinationalEnterprises are recommendations addressedby governments to multinational enterprisesoperating in or from adhering countries. Theyprovide voluntary principles and standardsfor responsible business conduct in a varietyof areas including human rights. (Based inParis).

Prince of Wales International Business Leaders’ Forum www.pwblf.orgThe International Business Leaders Forum isan international educational charity set up in1990 to promote responsible business practi-ces internationally that benefit business andsociety, and which help to achieve social,economic and environmentally sustainabledevelopment, particularly in new and emer-ging market economies. (Based in London).

Social Venture Network www.svn.orgSocial Venture Network promotes newmodels and leadership for socially and envi-ronmentally sustainable business in the 21stcentury. SVN champions this effort throughinitiatives, information services and forumsthat strengthen our community and empowerour members to work together on behalf oftheir shared vision. (Based in San Francisco).

World Business Council for Sustainable Developmentwww.wbcsd.orgThe World Business Council for SustainableDevelopment (WBCSD) is a coalition of 170international companies united by a sharedcommitment to sustainable development viathe three pillars of economic growth, ecologi-cal balance and social progress. (Based inGeneva).

BLIHR #1 – APPENDIX 4: RESOURCE LIST & LINKS

App

endi

x 4 Resource List & Links Listed here is a selection of some of the most significant business focused initi-

atives that have an interest in promoting human rights. A fuller listing is available at www.business-humanrights.org

Page 19: Business Leaders - ABB Group · Business Leaders’ Statement ting the greater realisation of human rights ... Lise Kingo Executive Vice ... Often through fulfillment of core purpose

”Never doubt that a small group

of thoughtful, committed citizens

can change the world; indeed, it's

the only thing that ever has.”

Margaret Mead

Page 20: Business Leaders - ABB Group · Business Leaders’ Statement ting the greater realisation of human rights ... Lise Kingo Executive Vice ... Often through fulfillment of core purpose

Respect Europe created, manages and facili-

tates Respect Table – an important business network.

Members of Respect Table’s network come from

different segments in the market and jointly share

knowledge, experience and actions. Respect Table

deals with social as well as ecological sustainability in

business. The network is action oriented, which means

that corporations come together to develop action

plans for a sustainable society.

The first initiative of Respect Table is focused on a

stringent Climate Policy, the action program – Busi-

ness Leaders Initiative on Climate Change (BLICC).

The Business Leaders Initiative on Human Rights is

the second action program, and was launched in July

2003.

Respect Europe is a values-driven consultancy

that inspires and assists the business community to

become responsible corporate citizens.

We actively promote a creative stakeholder

dialogue – not limited to our clients – but with

society as a whole.

We make principles and passion profitable,

promoting expansion and fundamental corporate

evolution – hereby contributing to effective

change.